Louisiana Federal Court Definitely Shuts Down Hammond Tax Preparer Takeover bid

A federal court in the Eastern District of Louisiana has permanently banned a Hammond tax preparer from preparing federal tax returns for others and from owning or operating a tax filing business in the future.

According to the court order issued on December 20, Kenisha Callahan consented to the injunction taking effect. The order requires Callahan to send a notice of injunction to its prior clients. The order also allows the United States to make a post-judgment discovery to monitor Callahan’s compliance with the injunction.

The civil lawsuit filed against Callahan alleged that she reported fabricated income or losses and false reporting statuses, in order to maximize the earned income tax credit of her clients. Further, the complaint alleged that Callahan impermissibly lowered some of its clients’ tax obligations by falsely claiming unreimbursed business expenses from employees and charitable gifts for people who were not entitled to claim such deductions. .

Assistant Deputy Attorney General David A. Hubbert of the Justice Department’s Taxation Division made the announcement.

Tax preparer fraud is one of the IRS’s tax scams and taxpayers looking for a tax preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a declaration should be a wake-up call to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for people with adjusted gross income below $ 72. $ 000. For people whose income exceeds this threshold, IRS Free File offers electronic federal tax forms that can be completed and filed online for free.

Over the past decade, the Taxation Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information on these cases is available on the website of the Ministry of Justice. An alphabetical list of those required to prepare returns and promote tax schemes can be found on this page. If you believe that any of the affected individuals or businesses may violate an injunction, please contact the Taxation Division with details.

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